Budget announcement RECAP: Jeremy Hunt's Spring Budget as it happened with pension, fuel duty, and energy bill changes
As part of a package aimed at helping with the cost of living, the Chancellor said the energy price guarantee, which caps average household bills at £2,500, will be extended at its current level from April to June.
It had been due to rise to £3,000 in April and the cost of scrapping the planned 20% increase will amount to about £3 billion.
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The fuel duty freeze and the 5p cut will be maintained for another year, saving the average driver around £100.
Jeremy Hunt confirmed nuclear power would be classed as “environmentally sustainable” to drive investment in the energy sector, and said he would launch “Great British Nuclear” to bring down costs
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Budget announcement RECAP: Jeremy Hunt announces Spring Budget with pension, fuel duty, and energy bill changes
The UK will not enter a “technical recession” this year, Jeremy Hunt told the Commons
More on that breaking news with the UK set to avoid a recession.
The Chancellor said: “We remain vigilant, and will not hesitate to take whatever steps are necessary for economic stability. Today the Office for Budget Responsibility forecast that because of changing international factors and the measures I take, the UK will not now enter a technical recession this year.
“They forecast we will meet the Prime Minister’s priorities to halve inflation, reduce debt and get the economy growing. We are following the plan and the plan is working. But that’s not all we’ve done.”
BREAKING: The rate of price rises, or inflation, is forecast to fall to 2.9% by the end of 2023, according to the Office for Budget Responsibility.
Chancellor Jeremy Hunt said of the Office for Budget Responsibility: “They forecast we will meet the Prime Minister’s priorities to halve inflation, reduce debt and get the economy growing. We are following the plan and the plan is working.”
Mr Hunt highlighted cost-of-living support, adding: “Today, we deliver the next part of our plan. A Budget for growth.
“Not just the growth that comes when you emerge from a downturn, but long-term, sustainable, healthy growth that pays for our NHS and schools, finds jobs for young people, and provides a safety net for older people all whilst making our country one of the most prosperous in the world. Prosperity with a purpose.”
Chancellor Jeremy Hunt said prepayment meters currently pay more than comparable customers on direct debit, noting: “Ofgem has already agreed with suppliers a temporary suspension to forced installations of prepayment meters.
“But today I go further, and confirm we will bring their charges in line with comparable direct debit charges. Under a Conservative government, the energy premium paid by our poorest households is coming to an end.”
Mr Hunt said he would provide a £63 million fund to “keep our public leisure centres and pools afloat” in response to high costs and £100 million will be given to support thousands of charities and community organisations.
In a nod to Sajid Javid, Mr Hunt went on: “I also note the personal courage of one of my predecessors (Mr Javid) in talking about the tragedy of suicide and the importance of preventing it.
“We already invest a lot in this area, but I will assign an extra £10 million over the next two years to help the voluntary sector play an even bigger role in stopping more families experiencing such intolerable heartache.”
A “Brexit pubs guarantee” will see the duty on draught products in pubs up to 11p lower than the duty in supermarkets from August, the Chancellor said.
Jeremy Hunt has confirmed the Energy Price Guarantee will remain at £2,500 for the typical household for the next three months.
He says this will save the average family a further £160 on top of support measures already announced.
GDP latest
The Chancellor has given an update on GDP and debt.
The Chancellor said: “I now turn to the Prime Minister’s second priority, which is to reduce debt. Here too our plan is on track. Underlying debt is forecast to be 92.4% of GDP next year, 93.7% in 2024-25; 94.6% in 2025-26, and 94.8% in 2026-27, before falling to 94.6% in 2027-28.
“We are meeting the debt priority.”
Mr Hunt added: “And with a buffer of £6.5bn, it means we are meeting our fiscal rule to have debt falling as a percentage of GDP by the fifth year of the forecast. As a proportion of GDP our debt remains lower than the USA, Canada, France, Italy and Japan.
“And because of the decisions I take today, and the improved outlook for the public finances, underlying debt in five years’ time is now forecast to be nearly three percentage points lower than it was in the Autumn. That means more money for our public services and a lower burden on future generations – deeply-held Conservative values which we put into practice today.”
The Chancellor has confirmed the Government will add £11bn to the defence budget over the next five years.
Jeremy Hunt said: “Today, following representations from our persuasive Defence Secretary, I confirm that we will add a total of £11bn to our defence budget over the next five years and it will be nearly 2.25% of GDP by 2025.
“We were the first large European country to commit to 2% of GDP for defence and will raise that to 2.5% as soon as fiscal and economic circumstances allow.”
BREAKING: Jeremy Hunt has confirmed £8.6m worth of funding for the Edinburgh Festival